(Bloomberg) -- Endurance Specialty Holdings Ltd. jumped the most since its 2003 initial public offering after a report that Sompo Japan Nipponkoa Insurance Inc. is planning to bid about $6.5 billion for the Bermuda-based insurer.
Endurance surged 35 percent to $87.87 at 3:41 p.m. Tuesday in New York after Nikkei reported that Sompo was solidifying plans for the purchase. Endurance confirmed in a statement that it is in discussions with the Japanese firm regarding a potential transaction, adding that “there can be no assurance that the discussions will lead to a definitive agreement.”
|Japanese insurers boosting growth abroad
Japanese insurers have acquired U.S. peers to boost growth abroad. Sumitomo Life Insurance Co. agreed last year to pay $3.8 billion for Symetra Financial Corp., and Tokio Marine Holdings Inc. purchased Houston-based HCC Insurance Holdings Inc. for about $7.5 billion.
Endurance, which is led by Chief Executive Officer John Charman, started operations in 2001 after the Sept. 11 attacks in New York. It grew by acquiring businesses, including last year’s purchase of Montpelier Re Holdings Ltd. The firm has operations in the U.S., Europe and Asia.
Endurance spokeswoman Ellen Erhardt and a representative for Sompo didn’t immediately return messages seeking comment.
Endurance in 2014 tried to combine with rival Aspen Insurance Holdings Ltd. in a $3.2 billion hostile takeover bid, but terminated the attempt after the target company rebuffed the offer.
Copyright 2018 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
